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Benin: The ceiling of the State's commitments is 1528.13 billion FCfa

09/02/2021
Categories: Economy/Forex

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The Beninese State Financing Plan for the year 2021 reveals that the public debt is capped at 1528 billion FCFA. Thus, the State's commitments represent 16.12% of gross domestic product (GDP).

The macroeconomic assumptions adopted and the debt strategy defined by Benin indicate that the total amount of the State's new commitments vis-à-vis donors would amount to 1528.13 billion CFA francs in 2021.
The Annual Debt Strategy of the State annexed to the 2021 Finance Law, specifies that external borrowings represent 600 billion CFA francs and the amount of new debt in local currency is estimated at 928.13 billion CFA francs
The document of the Ministry of Economy and Finance informs that the so-called "highly concessional" multilateral loans will represent 75.61% of external financing, with an indicative maturity of 38 to 40 years and a deferral of 5 to 10 years for an indicative interest rate of 0.74 to 0.82%.
"Concessional" loans will be of the order of 58.34 billion CFA francs, or 9.72% of the external debt, with an indicative maturity of 20 to 38 years and a deferral of 7 to 12 years, for an interest rate of 1.64 to 2.03%. "Semi-concessional" financing will be estimated at 23.87 billion with an indicative maturity of 33 years and a deferral of 9 years, for an interest rate of 0.95%.
Multilateral, bilateral and commercial "non-concessional" loans represent 64.16 billion CFA francs in 2021, or 10.69% of external debt, for an indicative maturity of 12 to 13 years, a deferral of 2 years and an interest rate of 0.83 to 3.80.

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